I have a business scenario in my current project, need some help to define it correctly in SAP, I am defining the steps here below, request a solution for the same:

Its a MTO process, sales order is booked first, SubCon PR is generated by the system automatically.

RM procurement carried out for the above order.

SubCon PR generated is used to send raw material to subcontractor (movement type: 311 E) against which we are receiving finished goods(FG) from the subcontracor.

Here, in my process, during receipt of the material, Finished goods are coming in the system by movement type: 101 E and the components (BOM components- Scrap/ Cutend) are received along with the FG with movement type: 545 E.

The business requirement is to receive only FG against SubCon PO and receive components(scrap/ cutend etc) as and when required. The stock always lies with the subcontractor. As and when the company wants to sell scrap, they will receive those separately.

My problem here is, while doing goods receipt through MIGO, I am bound to receive all components as well.

Request for an solution for this problem or suggest a alternative way to achieve this scenario.

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5 Answers

The by-products will never stay in vendor subcontracting stock (special stock O), they automatically post into your premises with the receipt.

If they stay at the vendor then you have to create a storage location for the vendor. Finally you would either have to do a 311 after the receipt to move the by-product back from your local storage location to the storage location that represents the vendor.

Or you receive all, finished and by-product, into the storage location that represents your vendor and do a 311 to move the finished good from there to your local location.

The production is just normal production order like any other material within your own plant. You also need this separate storage location representing the vendor.

Here you create standard production orders and post consumption and receipt with the usual transactions like COR6.

If I am not mistaken, then you assing the info record for subcontracting in the recipe. PP consultants should know it for sure.

When you create the production order, then a requisition is created to purchase the subcontracting service only.

when the material arrives in your plant, then you do a goods receipt for the service against the purchase order and then you do the order confirmation to post the quantities. And the costs for the service flow from the purchase order to production order.

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Procurement subcontracting is used for simple straight forward processes, lets say mechanical based where you have no variations on consumed and received quantities in relation to the BOM . In more complex manufacturing you should go with the production route, and create production orders and a storage location for the vendor site where you receive all stocks that will not be returned to your plant.

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Thanks for your reply. Can you explain this more how to achieve this scenario, this is MTO subcontracting process. The requirement is- the scrap/ cutend (BOM components) remain with the subcontracting vendor. As and when required, these crap/ cutend are being sold from vendor's premises.

Below are the steps currently being mapped:

1. SO is booked and SubCon PR is generated along with the SO. Based on PR, SubCOn PO is being created.

But in above steps, I am receiving BOM components(scrap/cutend) as well along with FG material during MIGO (step no 5). The business requirement is to keep the BOM components(by products- scrap/cutend) along with SubCon Vendor and should be received as and when required.

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101 E is for GR , 545E is for Scrap & 543E is for consumption of component at the time of GR subcontract purchase order. Make sure your component are not with -ve sign. If Not then Check MM setting for Movement 543E